Received 10 out of 10 correct. Answers are in BOLD.

1. (TCO F) Which of the following factors should be considered when determining whether to employ outside consultants during a fraud examination engagement? (Points : 3) Company politics The degree of expertise required for specific tasks Potential threats of retaliation against internal investigators ALL OF THE ABOVE

Question 2.2. (TCO F) In most cases, which of the following parties should be primarily responsible for directing a fraud examination? (Points : 3) The external auditors The head of the security department THE COMPANYS LEGAL COUNSEL The human resources manager

Question 3.3. (TCO F) _____ refers to establishing how and when a piece of evidence was received; how it was maintained or stored while in each persons possession; what changes, if any, it underwent in that persons custody; and how it left that persons custody. (Points : 3) Authentication Forensic examination CHAIN OF CUSTODY None of the above

Question 4.4. (TCO F) _____ involves obtaining information through the use of falsehoods or deception. (Points : 3) PRETEXTING Subject manipulation Forensic investigation Surveillance

Question 5.5. (TCO F) In which section of the standard fraud examination report should the investigator discuss the identity and background information obtained about the individuals implicated in the matter under investigation? (Points : 3) Summary Introduction BODY Results

Question 6.6. (TCO F) For the past several months the Adams Shop, a mom and pop retail store, has suffered costly losses due to the theft of merchandise. Putting in a comprehensive surveillance system that covers all of the entrances and exits at all four of their locations are not feasible at this time. Nevertheless, they have decided to install several surveillance cameras in their flagship store. They notified their employees that the cameras were being installed and placed posters at the store entrances notifying their customers of the new security. Not surprisingly, thefts decreased dramatically within a month and continued to decline over the next six months. Without the cash to install cameras in all the stores, Adams installed fake cameras at the other three stores and let employees and customers at those locations know about the cameras. Thefts dropped at the other stores as well. The concept that most likely explains why the thefts decreased is known as: (Points : 3) PERCEPTION OF DETECTION Proactive deterrence Surreptitious detection Pre-emptive anti-fraud strikes

Question 7.7. (TCO F) Which of the following choices is not an action that will increase the perception of detection within an organization? (Points : 3) CONDUCTING CLANDESTINE AUDITS Increasing the use of analytical reviews Developing employee anti-fraud education programs Establishing a reporting program

Question 8.8. (TCO F) As it relates to Corporate Sentencing Guidelines, corporations are required to perform certain minimum steps for due diligence. Which of the following is not one of the required steps? (Points : 3) Consistently enforce standards through appropriate discipline. Have policies defining standards and procedures to be followed by the organizations agents and employees. ASSIGN INTERNAL AUDIT PERSONNEL TO ENSURE COMPLIANCE. Use due care not to delegate significant authority to people who are known to have a propensity to engage in illegal activities.

Question 9.9. (TCO F) The concept of _____ provides that corporations can legally be held criminally responsible for the acts of their employees if those acts were done in the course and scope of their employment and for the apparent benefit of the corporation. (Points : 3) civil responsibility displaced criminal sanctions IMPUTED LIABILITY connected accountability

Question 10.10. (TCO F) The tone at the top that is set by management is more important in providing a strong ethical message to employees than having _____. (Points : 3) A FORMAL ORGANIZATIONAL ETHICS POLICY a strong company ethics statement a whistleblower protection program required ethical training for all associates